Zillow GroupBSP:Z2LL35 64 Gross Margin % is 73.31% as of Mar. 2026, which is 8% below its 10-year median of 79.81. GuruFocus rates BSP:Z2LL35 with a GF Score™ of 64/100 and a GF Value™ of R$159.47. The stock has 3 warning signs investors should review. Among 497 Interactive Media companies, Zillow Group ranks better than 61.37% on this metric.
The historical rank and industry rank for Zillow Group's Gross Margin % or its related term are showing as below:
BSP:Z2LL35'
s Gross Margin % Range Over the Past 10 Years
Min: 43.7 Med: 79.81 Max: 92.09
Current: 73.34
During the past 13 years, the highestGross Margin % of Zillow Group was 92.09%. The lowest was 43.70%. And the median was 79.81%.
BSP:Z2LL35's Gross Margin % is ranked better than 61.37% of 497
companies
in the Interactive Media industry
Industry Median: 62.58
vs BSP:Z2LL35: 73.34
Zillow Group had a gross margin of 73.31% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Zillow Group was 6.60% per year.
Zillow Group (BSP:Z2LL35) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Zillow Group had a gross margin of 73.31% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Zillow Group Gross Margin % Related Terms
Zillow Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Zillow Group's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BSP:Z2LL35 vs MTCH, BILI, SNAP: Gross Margin % Comparison
For the Internet Content & Information subindustry, Zillow Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Zillow Group Gross Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Zillow Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zillow Group's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Zillow Group (BSP:Z2LL35) has a Gross Margin % of 73.31% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Zillow Group and its competitors. This is near median its historical median of 79.81. Over the past decade, Zillow Group's Gross Margin % has ranged from 43.70 to 92.09. According to the industry distribution chart, Zillow Group ranks #192 out of 497 companies in the Interactive Media industry, placing it in the top 38.6%.
Is Zillow Group's Gross Margin % too high?
Zillow Group's current Gross Margin % of 73.31% is near median its 10-year median of 79.81. Over the past 10 years, this metric has ranged from a low of 43.70 to a high of 92.09. The Interactive Media industry median Gross Margin % is 62.58. Zillow Group's value of 73.31% is 17.1% above this industry median. Based on the distribution chart, Zillow Group ranks #192 out of 497 companies in the Interactive Media industry, which is above the industry midpoint. Overall, Zillow Group has a GF Score™ of 64/100, reflecting its overall financial health beyond just this single metric.
How does Zillow Group's Gross Margin % compare to MTCH and BILI?
According to the Interactive Media industry distribution chart, Zillow Group ranks #192 out of 497 companies for Gross Margin %. This puts Zillow Group in the upper half of its industry. The industry median Gross Margin % is 62.58. Zillow Group's value of 73.31% is 17.1% above this benchmark. Historically, Zillow Group's own Gross Margin % has ranged from 43.70 to 92.09 over the past decade. While the company's 10-year median is 79.81 vs. the industry median of 62.58, Zillow Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Interactive Media company?
The median Gross Margin % among Interactive Media companies is 62.58, based on 497 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zillow Group's current Gross Margin % of 73.31% is 17.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Zillow Group and its competitors. For the Interactive Media industry, the median Gross Margin % is 62.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zillow Group's current Gross Margin % is 73.31%, which is near median its own 10-year median of 79.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zillow Group stock overvalued right now?
Zillow Group (BSP:Z2LL35) has a current Gross Margin % of 73.31%. The stock's GF Value™ is R$159.47, compared to a current price of R$62.46 — trading 60.8% below its estimated fair value. The current Gross Margin % is 73.31%, which is near median its 10-year median of 79.81 and 17.1% above the Interactive Media industry median of 62.58. Zillow Group's overall GF Score™ is 64/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Zillow Group (BSP:Z2LL35), the current Gross Margin % is 73.31% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Zillow Group (BSP:Z2LL35) Overvalued in 2026?
Based on GuruFocus' analysis, Zillow Group stock appears to be undervalued.
The current stock price of R$62.46 is trading 60.8% below its estimated GF Value™ of R$159.47.
Key valuation signals for BSP:Z2LL35:
Gross Margin %: 73.31% (near median its 10-year median of 79.81)
GF Value™: R$159.47 vs. price of R$62.46 (60.8% below fair value)
Industry Position: 17.1% above the Interactive Media median (#192 of 497)
No single metric tells the full story. See the BSP:Z2LL35 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zillow Group Inc is a real estate technology company offering a digital platform that connects real estate customers with sellers, agents, loan officers, and other real estate-related professionals. With its tools and resources, Zillow helps real estate professionals grow their businesses, and for renters and housing providers, it offers a marketplace along with a set of end-to-end products and services to streamline applications, leases, payments, and more. The group operates various brands such as Zillow, Zillow Home Loans, Zillow Rentals, Zillow New Construction, Trulia, StreetEasy, Out East, HotPads, Follow Up Boss, ShowingTime, dotloop, and Zillow Closing. Its ecosystem spans the entire home journey from shopping to renting, buying, selling, and financing real estate.
64GF Score
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